meissnersd2[at]yahoo.com (Karl Meissner) wrote in message news:<98cc558a.0404050919.405151ef[at]posting.google.com> ...
- quote -

Prepaying credit card debt, loans, or mortgages is your best
alternative unless you are unfortunate enough to lack those.

--
Ron

Karl Meissner wrote:
- quote -

What about US savings bonds, specifically I-bonds? They have zero
volatility, zero fees, and are fully liquid after 12 months, with a
small (three months' interest) penalty if you redeem them within the
first 5 years. The interest rate adjusts with changes in the consumer
price index so to the extent there's inflation, your rate will go up (or
down) accordingly. Interest is tax-deferred unless you choose to report
it each year, and when it's reported, it's exempt from state tax.

Info: http://www.treasurydirect.gov/

-Tad

I am looking for an investment vehicle to hold a portion of personal
savings.
Basically move money from the family savings account to something that
can beat inflation and have a little bit of return.

It would be about $10k held in a taxable account.

goals in order of priority..
liquid - should be able to withdraw from the account with little
penalty
low volitity
low fees
should not get hammered if US interest rates rise
reduced tax burden?

The alternatives I have come up with have various flaws
municable bonds very low return
money market - short term bonds low return
long term bonds exposed to rise in interest rates
REIT fund? more volitile - exposed to rise in
interest

Did I miss anything?

Basically I am inhibited from being too aggressive since I think we
will see a rise in interest rates within a year...that would cause a
drop in bonds and maybe a drop in the value of REITs.

For what I am looking for, money market seems to be the traditional
solution, but the current returns (2 to 3%) are pretty paltry.

Any other ideas?